Transfers

Question 1

Assignment

Answer 1

COMPLETE transfer of ENTIRE REMAINING TERM of tenant’s lease to a third person

Question 2

Sublease

Answer 2

Transfer of LESS THAN ENTIRE REMAINING TERM of tenant’s lease to third person

Question 3

Prohibition in Lease

Answer 3

Lease may prohibit assignment/sublease by tenant without consent of landlord

Prohibitions in lease interpreted STRICTLY

Question 4

Consequences of Assignment

Answer 4

Landlord can collect from TENANT (privity of contract) or SUB-TENANT (privity of estate)

Unless there is a novation releasing original tenant

Question 5

Consequences of Sublease

Answer 5

Landlord can collect from TENANT ONLY

Landlord and sub-tenant do have privity of contract or estate

Question 6

Landlord Transfers

Answer 6

Landlord does NOT need tenant’s permission before transferring

If transferred during the leasehold, new landlord is bound by the terms of the lease